Tax Pain, Italian Gains: Can Europe’s Gambling Industry Afford the Upcoming Hikes?

Weekend conversation corner - 14 November

Welcome to Episode 33 of the Weekend Conversation Corner from Focus Gaming News! Join hosts Oliver and Charlotte as we dive into the top headlines of the week, filtering through the chaos to provide a condensed snapshot of crucial advancements.

This week, Europe’s regulatory landscape is shifting dramatically under pressure from governments seeking new revenue. The conversation begins in Italy, where the online gambling market has begun a “smooth and decisive reset”. The Italian regulator activated 52 new licenses, generating €364m for the state, while implementing tighter player safeguards, requiring registration via digital ID.

Meanwhile, the debate over taxing the industry rages. Bulgaria is set to increase its gambling tax rate from 20 to 25 per cent starting in 2026, coinciding with its preparation to join the Eurozone. Crucially, we look at the growing pressure on UK Prime Minister Sir Keir Starmer to raise taxes on British gambling, with supporters arguing the revenue could alleviate child poverty. However, the Gibraltar gambling commissioner warns that a substantial tax hike in the UK would cause “genuine pain”, leading to reduced growth and potentially driving revenue toward the unlicensed market. Speaking of the black market, the UK Gambling Commission acknowledged the challenge of measuring the size of the unlicensed sector due to limited data. Finally, we cover French casinos, which are strongly opposing calls for igaming legalisation, arguing it would result in massive job losses and significant revenue loss for the public purse.

With Gibraltar warning that the UK industry faces irreparable damage, Is the UK government balancing social needs against the economic stability of the regulated gambling sector, or risking driving operators into the unlicensed market?

Stay knowledgeable, stay motivated, and keep gaming on. Wishing you a fantastic weekend ahead!